Cutting the cost of keeping warmCAN Training-Day Conference, Coventry 07 October 2014

Rita WadeyFuel Poverty Strategy Team

1. A new target framework for England

2. The consultation Warmer Homes Supporting People Fairer Energy Markets Improving Delivery

3. The Strategy and next steps

Overview

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A new target framework

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The statutory target focuses on improving the energy efficiency of fuel poor homes.

The consultation proposes non-statutory interim targets to support the trajectory to 2030:

o as many … as is reasonably practicable to Band E by 2020

o as many … as is reasonably practicable to Band D by 2025

The consultation proposes a set of wider indicators to paint a detailed picture of progress

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Given the current distribution of fuel poor homes by energy efficiency band, the target and milestones represent a significant commitment.

Fewer than 5% of fuel poor homes are in Band C today.

Scale of the challenge Distribution of fuel poor homes by EPC Band

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Consultation to prepare for the Strategy

Guided by our three strategic principles : Help to those who need it most Cost-effective interventions Take account of the most vulnerable

Seeks views across four key themes: Warmer Homes Supporting People Fairer Energy Markets Improving delivery

How to meet the target – both short term changes to existing approaches and longer term shifts in direction

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Warmer HomesCutting bills & increasing comfort in the coldest low income homes – real and lasting difference

• How energy efficiency delivery may need to evolve further to meet the target

• Support for non-gas homes and alignment with the heat strategy

Support for people with health conditions linked to cold homes

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Supporting peopleTackling key drivers of fuel poverty through direct help on energy bills and action to increase income

• Still a need for action across all the drivers of fuel poverty

• How should we reflect evolving understanding of who is fuel poor in the way we deliver bill support?

• What are the opportunities and challenges of changes to the wider welfare and benefits system – are there implications for the way we target policy?

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Fairer energy marketsEnsuring that all our citizens take action and benefit from a more open energy market

Helping everyone get a good deal for their energy is a key Government priority – increased competition and openness in the energy market

Need to better understand behaviours of people on pre-payment meters and the relative fairness of different payment routes

Additional £1m to support the Big Energy Saving Network – helping vulnerable people to engage

We will monitor progress and consider need for further intervention

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Improving deliveryMaking the most of the support available and getting it to the right people

Improve targeting and create new opportunities for data sharing and data matching

Better cross-government working

Reaching out: Government cannot do this alone

Enhanced role for Fuel Poverty Advisory Group (FPAG)

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A new fuel poverty strategy for England Strategy will set out plans for achieving the target – but it is not the end point

Not possible or desirable to set the path to 2030 now – need ongoing strategic approach

Regular review points – to take stock of wider developments, progress made, lessons learnt and opportunities to reflect these in policy

We need to continue to work together to find solutions

We intend to hold an annual debate in Parliament on fuel poverty

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Thank you

Next steps• Consultation closes on 7 October

fuelpovertyconsultation@decc.gsi.gov.uk

• Regulations expected to come into force Autumn 2014

• Strategy expected to be published towards the end of the year

• But first, over to you!